New Jersey man charged in counterfeit Cisco case

A man from New Jersey has been arrested and charged with participating in a multimillion-dollar conspiracy to traffic counterfeit Cisco brand networking equipment.

Musa Karaman (35) has been charged with one count of conspiracy to commit mail and wire fraud in connection with a business involved in the sale of the fake devices set up with two associates, including Israfil "David" Demir and another unnamed conspirator.

The fakes were procured from various illicit suppliers based in China, according to a Department of Justice statement.

The illicit activities were discovered in May 2021, when federal agents executed a search warrant at a Woodland Park, New Jersey warehouse used by the gang. They discovered thousands of counterfeit Cisco devices, including 7,260 counterfeit Cisco transceivers with a total manufacturer’s suggested retail price of approximately $13.8m.

According to the manufacturer, this is one of the largest volumes of counterfeit Cisco transceivers ever seized in the US.

From September 2017 to May 2021, Customs and Border Protection (CBP) seized approximately $3.8m-worth of fake Cisco products contained in over 20 shipments sent by China-based suppliers to various locations under the control of Karaman and his conspirators, said the DoJ.

Demir was charged with offenses in connection with the case last year. Conspiracy to commit mail and wire fraud count carries a maximum potential penalty of 20 years in prison and a maximum fine of either $250,000 or twice the gain or loss from the offense, whichever is greatest.

Cisco is waging a war against counterfeiters, with some success, but the premium pricing their equipment commands makes them a constant target.

The company recommends that customers buy Cisco products only from authorized partners or directly from Cisco in order to minimize the risk of purchasing counterfeits.